ACC 205 week 1 Discussion 2Accounting Equation

Discussion 2 Accounts

ACC205 Principles of Accounting I Course Guide This course is an introduction to the principles and procedures of general financial accounting with an emphasis on reporting to individuals outside the organization, and the development of accounting reports on an accrual basis. ACC205 Principles of Accounting I COURSE GUIDE Table of Contents COURSE AT A GLANCE ...................................................................................................................................................................... 4 COURSE DESCRIPTION ............................................................................................................................................................................ 4 COURSE DESIGN ..................................................................................................................................................................................... 4 PREREQUISITES ...................................................................................................................................................................................... 4 COURSE LEARNING OUTCOMES ............................................................................................................................................................. 4 COURSE MATERIALS .......................................................................................................................................................................... 5 REQUIRED TEXT ..................................................................................................................................................................................... 5 RECOMMENDED RESOURCES .................................................................................................................................................................. 5 Article ................................................................................................................................................................................................ 7 Multimedia ........................................................................................................................................................................................ 7 Websites ............................................................................................................................................................................................ 8 COURSE GRADING............................................................................................................................................................................... 9 DISCUSSIONS .......................................................................................................................................................................................... 9 QUIZZES ................................................................................................................................................................................................. 9 ASSIGNMENTS ........................................................................................................................................................................................ 9 FINAL PAPER ........................................................................................................................................................................................ 10 GRADING PERCENT BREAKDOWN ........................................................................................................................................................ 10 WEEK ONE ........................................................................................................................................................................................... 11 COURSE CONTENT ................................................................................................................................................................................ 11 Overview ......................................................................................................................................................................................... 11 Weekly Learning Outcomes ............................................................................................................................................................. 11 Introduction ..................................................................................................................................................................................... 11 Required Resources ......................................................................................................................................................................... 12 Recommended Resources ................................................................................................................................................................ 13 Discussions...................................................................................................................................................................................... 13 Quizzes ............................................................................................................................................................................................ 14 Assignment ...................................................................................................................................................................................... 14 WEEK TWO .......................................................................................................................................................................................... 15 COURSE CONTENT ................................................................................................................................................................................ 15 Overview ......................................................................................................................................................................................... 15 Weekly Learning Outcomes ............................................................................................................................................................. 15 Introduction ..................................................................................................................................................................................... 15 Required Resource .......................................................................................................................................................................... 16 Recommended Resources ................................................................................................................................................................ 17 Discussions...................................................................................................................................................................................... 17 Quizzes ............................................................................................................................................................................................ 18 Assignment ...................................................................................................................................................................................... 18 WEEK THREE ...................................................................................................................................................................................... 20 COURSE CONTENT ................................................................................................................................................................................ 20 Overview ......................................................................................................................................................................................... 20 Weekly Learning Outcomes ............................................................................................................................................................. 20 Introduction ..................................................................................................................................................................................... 20 Required Resource .......................................................................................................................................................................... 21 Recommended Resources ................................................................................................................................................................ 22 Discussions...................................................................................................................................................................................... 22 2 ACC205 Principles of Accounting I COURSE GUIDE Quizzes ............................................................................................................................................................................................ 23 Assignment ...................................................................................................................................................................................... 23 WEEK FOUR ......................................................................................................................................................................................... 25 COURSE CONTENT ................................................................................................................................................................................ 25 Overview ......................................................................................................................................................................................... 25 Weekly Learning Outcomes ............................................................................................................................................................. 25 Introduction ..................................................................................................................................................................................... 25 Required Resource .......................................................................................................................................................................... 25 Recommended Resources ................................................................................................................................................................ 26 Discussions...................................................................................................................................................................................... 26 Quizzes ............................................................................................................................................................................................ 27 Assignment ...................................................................................................................................................................................... 27 WEEK FIVE .......................................................................................................................................................................................... 29 COURSE CONTENT ................................................................................................................................................................................ 29 Overview ......................................................................................................................................................................................... 29 Weekly Learning Outcomes ............................................................................................................................................................. 29 Introduction ..................................................................................................................................................................................... 29 Required Resources ......................................................................................................................................................................... 29 Recommended Resource.................................................................................................................................................................. 31 Discussions...................................................................................................................................................................................... 31 Quizzes ............................................................................................................................................................................................ 32 Assignments ..................................................................................................................................................................................... 32 COURSE MAP ....................................................................................................................................................................................... 34 3 ACC205 Principles of Accounting I COURSE GUIDE Course at a Glance Course Description This course is an introduction to the principles and procedures of general financial accounting with an emphasis on reporting to individuals outside the organization, and the development of accounting reports on an accrual basis. Course Design This course has been designed for the individual student. The learning environment with consists of readings, journal articles, multi-media presentations, discussion questions, problem assignments, and a Final Paper. The Final Paper should demonstrate an overall understanding of the materials presented throughout the course. Prerequisites There are no prerequisites for ACC205. Course Learning Outcomes Upon successful completion of this course, students will be able to 1. Examine business transactions using the accounting equation. 2. Perform each step of the accounting cycle using generally accepted accounting principles (GAAP). 3. Apply internal control principles to cash fund transactions, including accounts receivables and bank reconciliations. 4. Illustrate and journalize the acquisition, allocation of costs and disposal of plant and intangible assets including the calculation of depreciation and amortization methods. 5. Compute and journalize a business's current liability and payroll transactions. 6. Calculate merchandise inventory operations using inventory valuation methods and journalize transactions related to ending inventory and cost of goods sold. 4 ACC205 Principles of Accounting I COURSE GUIDE Course Materials Required Text K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. This text is a Constellation course digital materials (CDM) title. Required Resources Multimedia ALaccounting. (2011, April 26). Ratios to know - debt to asset [Video file]. Retrieved from https://www.youtube.com/watch?v=QjoS8YS2dtQ Education Unlocked. (2013, December 19). Accounts receivable [Video file]. Retrieved from https://www.youtube.com/watch?v=XKFUB3Y6Hqo Education Unlocked. (2013, December 19). Adjusting journal entries (accrual type) [Video file]. Retrieved from https://www.youtube.com/watch?v=xXeoGlQOV1c Education Unlocked. (2013, December 19). Adjusting journal entries (prepayment type) [Video file]. Retrieved from https://www.youtube.com/watch?v=C17Oc9JqG_Q&index=2&list=PL_KGEFWqEaTD7bVk8pXZhfpLZvmQX SJtk Education Unlocked. (2014, August 31). Average cost inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=qAWVVw-dC5A Education Unlocked. (2014, August 29). Capital stock (common stock and preferred stock) [Video file]. Retrieved from https://www.youtube.com/watch?v=TZ2uWgtQXBo Education Unlocked. (2014, August 29). Cash and cash equivalents [Video file]. Retrieved from https://www.youtube.com/watch?v=4Pxr_ZoZ050 Education Unlocked. (2014, February 14). Cost of goods sold (COGS) for a manufacturing firm [Video file]. Retrieved from https://www.youtube.com/watch?v=uTMHzKWXJks Education Unlocked. (2014, August 29). Current liabilities [Video file]. Retrieved from https://www.youtube.com/watch?v=3stZc3wAbhw Education Unlocked. (2014, February 14). Current ratio [Video file]. Retrieved from https://www.youtube.com/watch?v=sWWnsvuQ3kk 5 ACC205 Principles of Accounting I COURSE GUIDE Education Unlocked. (2013, December 19). Debits and credits [Video file]. Retrieved from https://www.youtube.com/watch?v=cHzCOA3b9So&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac&in dex=2 Education Unlocked. (2013, July 9). Depreciation in financial accounting [Video file]. Retrieved from https://www.youtube.com/watch?v=fvj4iV3r49s Education Unlocked. (2014, August 29). Double declining balance depreciation method [Video file]. Retrieved from https://www.youtube.com/watch?v=ziayge17w6g Education Unlocked. (2013, July 15). How to calculate inventory turnover [Video file]. Retrieved from https://www.youtube.com/watch?v=Ophz0_bkUAg Education Unlocked. (2014, February 11). Introduction to the balance sheet [Video file]. Retrieved from https://www.youtube.com/watch?v=f89jzUybyBw Education Unlocked. (2014, August 29). Inventory [Video file]. Retrieved from https://www.youtube.com/watch?v=iSq6ExI4Aw Education Unlocked. (2014, August 31). FIFO inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=Wa83L8TvoaM Education Unlocked. (2014, August 31). LIFO inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=zLAvpS6o25E Education Unlocked. (2014, February 14). Quick ratio (acid test ratio) [Video file]. Retrieved from https://www.youtube.com/watch?v=J_NM9TVwgfU Education Unlocked. (2013, December 19). Recording a journal entry [Video file]. Retrieved from https://www.youtube.com/watch?v=t3CqIfRtPLY&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac&inde x=3 Education Unlocked. (2014, February 11). Revenue, defined and explained [Video file]. Retrieved from https://www.youtube.com/watch?v=QwzHegsB6JY Education Unlocked. (2014, August 29). Straight line depreciation method [Video file]. Retrieved from https://www.youtube.com/watch?v=RHo_3kWaIJo Education Unlocked. (2013, July 10). The basic accounting equation [Video file]. Retrieved from https://www.youtube.com/watch?v=cLG7K6Sq9K4&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac Education Unlocked. (2013, July 14). The income statement, defined and explained [Video file]. Retrieved from https://www.youtube.com/watch?v=-__bUSEls5Y Education Unlocked. (2014, February 11). The statement of retained earnings [Video file]. Retrieved from https://www.youtube.com/watch?v=z-SA9HgY_HQ 6 ACC205 Principles of Accounting I COURSE GUIDE Education Unlocked. (2014, February 11). What is an expense? (Financial Accounting) [Video file]. Retrieved from https://www.youtube.com/watch?v=vCzxb4vX3rI Faithful Runner. (2014, May 20). Income statement: Single step vs. multiple step - CPA FAR review [Video file]. Retrieved from https://www.youtube.com/watch?v=EYd1fFVRrZE Mursau, A. (2013, January 22). Current liabilities accounting (payroll deductions, employee vs employer payables & expenses) [Video file]. Retrieved from https://www.youtube.com/watch?v=Lcll-Cx3qoY Mursau, A. (2013, March 26). Stockholders equity (rate of return on common stock equity, trading on equity, ROE, ROA) [Video file]. Retrieved from https://www.youtube.com/watch?v=LuQOoQTZ8gM Routh, B. (2011, May 24). Financial statement analysis: Vertical analysis - Financial accounting video [Video file]. Retrieved from https://www.youtube.com/watch?v=OT1BVZPNfks Routh, B. (2011, May 22). What is financial statement analysis: Horizontal analysis? - Accounting video [Video file]. Retrieved from https://www.youtube.com/watch?v=x_ltrzpz4Ew SusanCrosson. (2008, February 19). FA 9 4 units of production depreciation [Video file]. Retrieved from https://www.youtube.com/watch?v=yg5CULLqtPg Westlake, J. (2012, September 21). Net profit margin presentation [Video file]. Retrieved from https://www.youtube.com/watch?v=O-WuC_Nn4Sg Recommended Resources Balance Sheet Template This resource is only available in the online classroom. Article Alexander, S. (1999). Accrual- vs. Cash-Based Accounting. Computerworld, 33(27), 52. Retrieved from the ProQuest database. Multimedia gordonhensley. (2012, July 7). Accounting equation and basic financial statements lecture [Video file]. Retrieved from http://www.youtube.com/watch?v=IXJLItbL18A Pence, C. (2010, November 12). Accounting lecture 8 part I - LIFO, FIFO & average cost [Video file]. Retrieved from http://www.youtube.com/watch?v=UGs1EXalrZo&feature=player_embedded Walther, L. (2010, November 21). Current liabilities [Video file]. Retrieved from http://www.youtube.com/watch?feature=endscreen&v=hjT6hRz96zc&NR= 7 ACC205 Principles of Accounting I COURSE GUIDE Websites Boundless (2015). Current ratio. Retrieved from https://www.boundless.com/finance/textbooks/boundless-financetextbook/analyzing-financial-statements-3/liquidity-ratios-41/current-ratio-214-6599/? Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) 8 ACC205 Principles of Accounting I COURSE GUIDE Course Grading Multiple measures of assessment are used in the course, allowing students opportunities to demonstrate their learning in more than one way and giving consideration to individual learning styles. Course components that will be assessed are noted below. Discussions Each week students will participate in online discussions with classmates, which are related to the week's readings. These discussions replace the interactive dialogue that occurs in the traditional classroom setting. Each week, students' initial discussion posts are due by 11:59 p.m. (in the time zone in which each student resides) on Day 3 (Thursday). Students will have until 11:59 p.m. on Day 7 (the following Monday) to make the required minimum number of response posts to classmates. Discussions represent 30.5% of the overall course grade. Quizzes In Weeks One through Five, students will demonstrate and reinforce their understanding of the week's content by taking open-book quizzes. The course has been developed to include learning steps, which include video, PowerPoint, and chapter quizzes that students are required to complete prior to accessing the assignment. The video, PowerPoint, and chapter quizzes must be completed in order and the quizzes passed with a grade of 80% before moving to the next course learning step. If 80% is not earned on the first attempt, a student may retake the quiz to earn the necessary 80%. The quiz must be completed in one sitting, by Day 7 of the week in which it is due. The questions are multiple choice and true/false. Quizzes represent 14.5% of the overall course grade. Assignments There are written assignments due in Weeks One through Five of this course. These assignments must reflect collegelevel writing. Assignments represent 40% of the overall course grade. 9 ACC205 Principles of Accounting I COURSE GUIDE Final Paper The final assignment for this course is a Final Paper. The purpose of the Final Paper is for you to culminate the learning achieved in the course by providing a financial statement analysis of a public company. The Final Paper represents 15% of the overall course grade. Grading Percent Breakdown Grading Percent Activity Discussions 30.5 Quizzes 14.5 Assignments 40 Final Paper 15 Total 100 10 ACC205 Principles of Accounting I COURSE GUIDE Week One Course Content To be completed during the first week of class Overview Activity Post Your Introduction Accounting Equation Accounts Due Date Format Grading Percent Day 1 Discussion 0.5 Discussion 3 Discussion 3 Day 3 st (1 post) Day 3 st (1 post) Videos & Quiz: Chapter 1 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 1 Day 7 Quiz 0.25 Videos & Quiz: Chapter 2 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 2 Day 7 Quiz 0.25 Quiz: Chapters 1 & 2 Day 7 Quiz 2 Week One Assignment Day 7 Assignment 8 Weekly Learning Outcomes This week students will 1. Describe the conceptual underpinnings of accounting. 2. Apply the fundamental accounting equation and the impact of transactions. 3. Evaluate how accounts are impacted by the debit/credit rules. 4. Create journal entries to describe the effects of transactions and events. Introduction Accounting is the language of business. Accounting provides the concepts and techniques that are used to measure and report financial information. The financial information is broken down into accounts for each individual financial statement asset, liability, equity, revenue, expense, or dividend component. The collective sum of all accounts confirms the accounting equation of Assets = Liabilities + Owners' Equity. 11 ACC205 Principles of Accounting I COURSE GUIDE Required Resources Text K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. Chapter 1: Introduction to Accounting Chapter 2: The Accounting System Multimedia Education Unlocked. (2013, December 19). Debits and credits [Video file]. Retrieved from https://www.youtube.com/watch?v=cHzCOA3b9So&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac&in ind=2 Accessibility Statement Privacy Policy Education Unlocked. (2014, February 11). Introduction to the balance sheet [Video file]. Retrieved from https://www.youtube.com/watch?v=f89jzUybyBw Accessibility Statement Privacy Policy Education Unlocked. (2013, December 19). Recording a journal entry [Video file]. Retrieved from https://www.youtube.com/watch?v=t3CqIfRtPLY&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac&inde x=3 Accessibility Statement Privacy Policy Education Unlocked. (2013, July 10). The basic accounting equation [Video file]. Retrieved from https://www.youtube.com/watch?v=cLG7K6Sq9K4&list=PL_KGEFWqEaTDWkWZv9HczHQAnsfYYrMac Accessibility Statement Privacy Policy Education Unlocked. (2013, July 14). The income statement, defined and explained [Video file]. Retrieved from https://www.youtube.com/watch?v=-__bUSEls5Y Accessibility Statement Privacy Policy Education Unlocked. (2014, February 11). The statement of retained earnings [Video file]. Retrieved from https://www.youtube.com/watch?v=z-SA9HgY_HQ Accessibility Statement Privacy Policy 12 ACC205 Principles of Accounting I COURSE GUIDE Recommended Resources Article Balance Sheet Template This resource is only available in the classroom. Multimedia gordonhensley. (2012, July 7). Accounting equation and basic financial statements lecture [Video file]. Retrieved from http://www.youtube.com/watch?v=IXJLItbL18A Website Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) Discussions Participate in the following discussions: 1. Post Your Introduction. 1st Post Due by Day 1. Please post a brief introduction on the first day of class. Respond to at least three of your classmates' introductions. Use this forum to get acquainted and for ongoing non-content related discussion. Please note: You must create one initial post and at least three responses, for a minimum of four posts for this discussion. 2. Accounting Equation [CLOs: 1, 2]. 1st Post Due by Day 3. As you have learned in this week's readings, the Accounting Equation is Assets = Liabilities + Owners' Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation. Guided Response: Review several of your peers' posts and identify some core components that you feel should be included in every transaction. Respond to at least two of your peers and provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to reevaluate or add components to their transactions. 3. Accounts [CLOs: 1, 2]. 1st Post Due by Day 3. What does the term account mean? What are the different classifications of accounts? How do the rules for debits and credits impact accounts? Please provide an example of how debits and credits impact accounts. 13 ACC205 Principles of Accounting I COURSE GUIDE Guided Response: Analyze several of your peers' posts. Let at least two of your peers know if this knowledge could be used in their everyday lives. Is so, how? If not, why not? Quizzes 1. Videos & Quiz: Chapter 1. Due by Day 7. Complete the quiz on the assigned Chapter 1 videos for the week. 2. PowerPoint & Quiz: Chapter 1. Due by Day 7. Complete the quiz on the assigned Chapter 1 PowerPoint for the week. 3. Videos & Quiz: Chapter 2. Due by Day 7. Complete the quiz on the assigned Chapter 2 videos for the week. 4. PowerPoint & Quiz: Chapter 2. Due by Day 7. Complete the quiz on the assigned Chapter 1 PowerPoint for the week. 5. Quiz: Chapters 1 & 2. Due by Day 7. Complete the quiz on the assigned readings for the week. Assignment 1. Week One Assignment [CLOs: 1, 2]. Due by Day 7. Complete the assignment using the guidance report and changed numbers, available in your online classroom. Chapter One, Exercises 2, 5, and 8 Chapter One, Problems 3 and 5 Chapter Two, Exercises 3 and 4 14 ACC205 Principles of Accounting I COURSE GUIDE Week Two Course Content To be completed during the second week of class Overview Activity Accounting Cycle Bank Reconciliation Due Date Day 3 st (1 post) Day 3 st (1 post) Format Grading Percent Discussion 3 Discussion 3 Videos & Quiz: Chapter 3 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 3 Day 7 Quiz 0.25 Videos & Quiz: Chapter 4 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 4 Day 7 Quiz 0.25 Quiz: Chapters 3 & 4 Day 7 Quiz 2 Week Two Assignment Day 7 Assignment 8 Weekly Learning Outcomes This week students will 1. Apply the fundamental concepts of income measurement and the accrual basis of accounting. 2. Describe the accounting cycle and the steps that lead to the preparation of correct financial statements. 3. Apply income under the cash basis of accounting. 4. Create bank reconciliations and related adjusting entries. 5. Describe the concepts of cash and cash equivalents. Introduction Accounting income is based on a transaction and events model. The challenge to determining accounting income is that revenue and expense items are constantly in a state of flux. For instance, a company may provide services for a customer and receive payment in the following period. Cash is king. It is considered the most important asset of a company. A business needs to be able to effectively manage cash to be successful. 15 ACC205 Principles of Accounting I COURSE GUIDE Required Resources Text K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. Chapter 3: Income Measurement and the Accounting Cycle Chapter 4: Cash, Receivables, and Controls Multimedia Education Unlocked. (2013, December 19). Accounts receivable [Video file]. Retrieved from https://www.youtube.com/watch?v=XKFUB3Y6Hqo Accessibility Statement Privacy Policy Education Unlocked. (2013, December 19). Adjusting journal entries (accrual type) [Video file]. Retrieved from https://www.youtube.com/watch?v=xXeoGlQOV1c Accessibility Statement Privacy Policy Education Unlocked. (2013, December 19). Adjusting journal entries (prepayment type) [Video file]. Retrieved from https://www.youtube.com/watch?v=C17Oc9JqG_Q&index=2&list=PL_KGEFWqEaTD7bVk8pXZhfpLZvmQX SJtk Accessibility Statement Privacy Policy Education Unlocked. (2014, August 29). Cash and cash equivalents [Video file]. Retrieved from https://www.youtube.com/watch?v=4Pxr_ZoZ050 Accessibility Statement Privacy Policy Education Unlocked. (2014, February 11). Revenue, defined and explained [Video file]. Retrieved from https://www.youtube.com/watch?v=QwzHegsB6JY Accessibility Statement Privacy Policy Education Unlocked. (2014, February 11). What is an expense? (Financial Accounting) [Video file]. Retrieved from https://www.youtube.com/watch?v=vCzxb4vX3rI Accessibility Statement Privacy Policy 16 ACC205 Principles of Accounting I COURSE GUIDE Recommended Resources Article Alexander, S. (1999). Accrual- vs. Cash-Based Accounting. Computerworld, 33(27), 52. Retrieved from the ProQuest database. Website Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) Discussions Participate in the following discussions: 1. Accounting Cycle [CLOs: 1, 2]. 1st Post Due by Day 3. Financial statements are a product of the accounting cycle. Think about two different companies: a manufacturing company, and a retail company. Why would different companies have different accounting cycles? Would you expect the steps of the accounting cycle to be the same for each company? Why, or why not? Guided Response: Review several of your peers' posts and identify what steps of the accounting cycle that you feel are the most critical. Respond to at least two of your peers and provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to reevaluate their positions on the accounting cycle. 2. Bank Reconciliation [CLOs: 1, 2, 3]. 1st Post Due by Day 3. What is the purpose of a bank reconciliation? What are the reasons for differences between the cash reported in the accounting records, and the cash balance in the bank statements? Analyze several of your peers' posts. Let at least two of your peers know what happens to the discrepancies between the book balance and the bank balance. Could these differences just be written off? Guided Response: A bank reconciliation reconciles the bank account balance per the books to the actual bank balance. Outstanding checks, deposits in transit, and bank errors are reasons there are differences between the cash reported in the accounting records and the cash balance in the bank statements. 17 ACC205 Principles of Accounting I COURSE GUIDE Quizzes 1. Videos & Quiz: Chapter 3. Due by Day 7. Complete the quiz on the assigned Chapter 3 videos for the week. 2. PowerPoint & Quiz: Chapter 3. Due by Day 7. Complete the quiz on the assigned Chapter 3 PowerPoint for the week. 3. Videos & Quiz: Chapter 4. Complete the quiz on the assigned Chapter 4 videos for the week. 4. PowerPoint & Quiz: Chapter 4. Due by Day 7. Complete the quiz on the assigned Chapter 4 PowerPoint for the week. 5. Quiz: Chapters 3 & 4. Due by Day 7. Complete the quiz on the assigned readings for the week. Assignment 1. Week Two Assignment [CLOs: 1, 2]. Due by Day 7. Complete the assignment using the guidance report and changed numbers, available in your online classroom. Chapter Three, Exercises 4 and 8 Chapter Four, Exercises 3 and 6 Chapter Three, Problem 3 Chapter Four, Problem 3 18 ACC205 Principles of Accounting I COURSE GUIDE 19 ACC205 Principles of Accounting I COURSE GUIDE Week Three Course Content To be completed during the third week of class Overview Activity LIFO vs. FIFO Depreciation Due Date Day 3 st (1 post) Day 3 st (1 post) Format Grading Percent Discussion 3 Discussion 3 Videos & Quiz: Chapter 5 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 5 Day 7 Quiz 0.25 Videos & Quiz: Chapter 6 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 6 Day 7 Quiz 0.25 Quiz: Chapters 5 & 6 Day 7 Quiz 2 Week Three Assignment Day 7 Assignment 8 Weekly Learning Outcomes This week students will 1. Explain the basics of recording inventory purchases and sales. 2. Apply FIFO, LIFO, and moving average inventory costing assumptions. 3. Analyze conceptual and applied issues pertaining to alternative depreciation methods. 4. Apply transactions related to the disposal of assets. Introduction The concept of inventory is fairly simple to understand. A company purchases inventory it is recorded as an assets. What happens if the cost of the inventory increases? What happens if the cost of the inventory falls? In this week's readings you will learn about different inventory methods (FIFO, LIFO, Weighted Average). Property, plant, and equipment provide benefits for multiple periods. As a result, a company records depreciation to systematically allocate the cost of the asset over multiple periods. 20 ACC205 Principles of Accounting I COURSE GUIDE Required Resources Text K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. Chapter 5: Inventory Chapter 6: Plant Assets Multimedia Education Unlocked. (2014, August 31). Average cost inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=qAWVVw-dC5A Accessibility Statement Privacy Policy Education Unlocked. (2014, February 14). Cost of goods sold (COGS) for a manufacturing firm [Video file]. Retrieved from https://www.youtube.com/watch?v=uTMHzKWXJks Accessibility Statement Privacy Policy Education Unlocked. (2013, July 9). Depreciation in financial accounting [Video file]. Retrieved from https://www.youtube.com/watch?v=fvj4iV3r49s Accessibility Statement Privacy Policy Education Unlocked. (2014, August 29). Double declining balance depreciation method [Video file]. Retrieved from https://www.youtube.com/watch?v=ziayge17w6g Accessibility Statement Privacy Policy Education Unlocked. (2014, August 31). FIFO inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=Wa83L8TvoaM Accessibility Statement Privacy Policy Education Unlocked. (2014, August 29). Inventory [Video file]. Retrieved from https://www.youtube.com/watch?v=iSq6ExI4Aw Accessibility Statement Privacy Policy Education Unlocked. (2014, August 31). LIFO inventory method [Video file]. Retrieved from https://www.youtube.com/watch?v=zLAvpS6o25E 21 ACC205 Principles of Accounting I COURSE GUIDE Accessibility Statement Privacy Policy Education Unlocked. (2014, August 29). Straight line depreciation method [Video file]. Retrieved from https://www.youtube.com/watch?v=RHo_3kWaIJo Accessibility Statement Privacy Policy Faithful Runner. (2014, May 20). Income statement: Single step vs. multiple step - CPA FAR review [Video file]. Retrieved from https://www.youtube.com/watch?v=EYd1fFVRrZE Accessibility Statement Privacy Policy SusanCrosson. (2008, February 19). FA 9 4 units of production depreciation [Video file]. Retrieved from https://www.youtube.com/watch?v=yg5CULLqtPg Accessibility Statement Privacy Policy Recommended Resources Multimedia Pence, C. (2010, November 12). Accounting lecture 8 part I - LIFO, FIFO & average cost [Video file]. Retrieved from http://www.youtube.com/watch?v=UGs1EXalrZo&feature=player_embedded Website Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) Discussions Participate in the following discussions: 1. LIFO vs. FIFO [CLO: 6]. 1st Post Due by Day 3. The controller of Sagehen Enterprises believes that the company should switch from the LIFO method to the FIFO method. The controller's bonus is based on the next income. It is the controller's belief that the switch in inventory methods would increase the net income of the company. What are the differences between the LIFO and FIFO methods? Guided Response: Analyze several of your peers' posts. Let at least two of your peers know if a company is better off if it switches from a LIFO method to a FIFO method. Explain your reasoning. 22 ACC205 Principles of Accounting I COURSE GUIDE 2. Depreciation [CLO: 4]. 1st Post Due by Day 3. A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method? Guided Response: Let at least two of your peers know if a company would use an accelerated depreciation method for their financial statements or their tax returns. Why do you believe this would be the case? Quizzes 1. Videos & Quiz: Chapter 5. Due by Day 7. Complete the quiz on the assigned Chapter 5 videos for the week. 2. PowerPoint & Quiz: Chapter 5. Due by Day 7. Complete the quiz on the assigned Chapter 5 PowerPoint for the week. 3. Videos & Quiz: Chapter 6. Complete the quiz on the assigned Chapter 6 videos for the week. 4. PowerPoint & Quiz: Chapter 6. Due by Day 7. Complete the quiz on the assigned Chapter 6 PowerPoint for the week. 5. Quiz: Chapters 5 & 6. Due by Day 7. Complete the quiz on the assigned readings for the week. Assignment 1. Week Three Assignment [CLOs: 1, 2, 4, 6]. Due by Day 7. Complete the assignment using the guidance report and changed numbers, available in your online classroom. Chapter Five, Exercise 1 Chapter Five, Problem 2 Chapter Six, Exercises 2 and 3 Chapter Six, Problem 2 23 ACC205 Principles of Accounting I COURSE GUIDE 24 ACC205 Principles of Accounting I COURSE GUIDE Week Four Course Content To be completed during the fourth week of class Overview Activity Current Liability Client Recommendations Due Date Day 3 st (1 post) Day 3 st (1 post) Format Grading Percent Discussion 3 Discussion 3 Videos & Quiz: Chapter 7 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 7 Day 7 Quiz 0.25 Videos & Quiz: Chapter 8 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 8 Day 7 Quiz 0.25 Quiz: Chapters 7 & 8 Day 7 Quiz 2 Week Four Assignment Day 7 Assignment 8 Weekly Learning Outcomes This week students will 1. Describe the accounting for accountsotes payable and other typical, current liabilities. 2. Describe the nature of accruals, deposits, estimates, contingencies, and similar obligations. 3. Analyze the current liability section of a balance sheet. 4. Compare and contrast the advantages and disadvantages of alternative entity forms. Introduction Current liabilities are the current obligations of a company that must be settled within one year or the operating cycle. By separating the liabilities of a company, users of financial statements can determine the amount of future obligations. There are a number of different entity choices ranging from corporations, partnerships, and sole proprietorships. Each of the different entity choices has both advantages and disadvantages. Required Resources Text 25 ACC205 Principles of Accounting I COURSE GUIDE K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. Chapter 7: Current Liabilities Chapter 8: Corporate and Partnership Equity Multimedia Education Unlocked. (2014, August 29). Capital stock (common stock and preferred stock) [Video file]. Retrieved from https://www.youtube.com/watch?v=TZ2uWgtQXBo Accessibility Statement Privacy Policy Education Unlocked. (2014, August 29). Current liabilities [Video file]. Retrieved from https://www.youtube.com/watch?v=3stZc3wAbhw Accessibility Statement Privacy Policy Mursau, A. (2013, January 22). Current liabilities accounting (payroll deductions, employee vs employer payables & expenses) [Video file]. Retrieved from https://www.youtube.com/watch?v=Lcll-Cx3qoY Accessibility Statement Privacy Policy Recommended Resources Multimedia Walther, L. (2010, November 21). Current liabilities [Video file]. Retrieved from http://www.youtube.com/watch?feature=endscreen&v=hjT6hRz96zc&NR= Website Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) Discussions Participate in the following discussions: 1. Current Liability [CLOs: 2, 5]. 1st Post Due by Day 3. What is a current liability? From the perspective of a user of financial statements, why do you believe current liabilities are separated from long-term liabilities? Based on your current experience as well as any additional research you may have done, provide two examples of situations where businesses collect monies from customers and employees and report these amounts as a current liability. 26 ACC205 Principles of Accounting I COURSE GUIDE Guided Response: Review several of your peers' posts and identify the core components of a current liability. Respond to at least two of your peers and provide recommendations to extend their thinking. Challenge your peers by asking a question that may cause them to reevaluate if their example is a current liability. 2. Client Recommendations. 1st Post Due by Day 3. A client comes to you thinking about starting a consulting business. Your client is specifically interested in what type of entity should be created for this new business. Based on your readings, or any additional research you may have done, discuss the advantages and disadvantages of the following: sole proprietorship, partnership, and corporation. Based on these advantages and disadvantages, provide a clear recommendation to your client. Guided Response: Let at least two of your peers know if an alternative choice of entity would be possible. What would be the benefits of this new entity choice? Would there be any disadvantages associated with this new entity selection? Quizzes 1. Videos & Quiz: Chapter 7. Due by Day 7. Complete the quiz on the assigned Chapter 7 videos for the week. 2. PowerPoint & Quiz: Chapter 7. Due by Day 7. Complete the quiz on the assigned Chapter 7 PowerPoint for the week. 3. Videos & Quiz: Chapter 8. Due by Day 7. Complete the quiz on the assigned Chapter 8 videos for the week. 4. PowerPoint & Quiz: Chapter 8. Due by Day 7. Complete the quiz on the assigned Chapter 8 PowerPoint for the week. 5. Quiz: Chapters 7 & 8. Due by Day 7. Complete the quiz on the assigned readings for the week. Assignment 1. Week Four Assignment [CLOs: 1, 2, 5]. Due by Day 7. Complete the assignment using the guidance report and changed numbers, available in your online classroom. Chapter Seven, Exercises 2 and 4 27 ACC205 Principles of Accounting I Chapter Seven, Problem 2 COURSE GUIDE Chapter Eight, Problem 1 28 ACC205 Principles of Accounting I COURSE GUIDE Week Five Course Content To be completed during the fifth week of class Overview Activity Ratios Profit Margin Due Date Day 3 st (1 post) Day 3 st (1 post) Format Grading Percent Discussion 3 Discussion 3 Videos & Quiz: Chapter 9 Day 7 Quiz 0.25 PowerPoint & Quiz: Chapter 9 Day 7 Quiz 0.25 Quiz: Chapter 9 Day 7 Quiz 2 Week Five Assignment Day 7 Assignment 8 Final Paper Day 7 Assignment 15 Weekly Learning Outcomes This week students will 1. Analyze the working capital, the current ratio, and the quick ratio to determine the liquidity of an entity. 2. Assess debt service analysis by using the debt to assets, debt to equity, and times interest earned ratios. 3. Analyze receivable and inventory turnover. 4. Assess margins and rates of return to determine profitability. Introduction Users of financial statements often use financial ratios to make investing and lending decisions. Financial ratios range from liquidity ratios, debt service ratios, inventory analysis and profitability ratios. Investors can readily compare the financial ratios of two companies in the same industry to determine which company is worth of investing in. Required Resources Text K Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I . San Diego, CA: Bridgepoint Education, Inc. 29 ACC205 Principles of Accounting I COURSE GUIDE Chapter 9: Ratio Analysis Multimedia ALaccounting. (2011, April 26). Ratios to know - debt to asset [Video file]. Retrieved from https://www.youtube.com/watch?v=QjoS8YS2dtQ Accessibility Statement Privacy Policy Education Unlocked. (2014, February 14). Current ratio [Video file]. Retrieved from https://www.youtube.com/watch?v=sWWnsvuQ3kk Accessibility Statement Privacy Policy Education Unlocked. (2013, July 15). How to calculate inventory turnover [Video file]. Retrieved from https://www.youtube.com/watch?v=Ophz0_bkUAg Accessibility Statement Privacy Policy Education Unlocked. (2014, February 14). Quick ratio (acid test ratio) [Video file]. Retrieved from https://www.youtube.com/watch?v=J_NM9TVwgfU Accessibility Statement Privacy Policy Mursau, A. (2013, March 26). Stockholders equity (rate of return on common stock equity, trading on equity, ROE, ROA) [Video file]. Retrieved from https://www.youtube.com/watch?v=LuQOoQTZ8gM Accessibility Statement Privacy Policy Routh, B. (2011, May 24). Financial statement analysis: Vertical analysis - Financial accounting video [Video file]. Retrieved from https://www.youtube.com/watch?v=OT1BVZPNfks Accessibility Statement Privacy Policy Routh, B. (2011, May 22). What is financial statement analysis: Horizontal analysis? - Accounting video [Video file]. Retrieved from https://www.youtube.com/watch?v=x_ltrzpz4Ew Accessibility Statement Privacy Policy 30 ACC205 Principles of Accounting I COURSE GUIDE Westlake, J. (2012, September 21). Net profit margin presentation [Video file]. Retrieved from https://www.youtube.com/watch?v=O-WuC_Nn4Sg Accessibility Statement Privacy Policy Recommended Resource Websites Boundless (2015). Current ratio. Retrieved from https://www.boundless.com/finance/textbooks/boundless-financetextbook/analyzing-financial-statements-3/liquidity-ratios-41/current-ratio-214-6599/? Flashcard Machine - Create, Study and Share Online Flash Cards. (http://www.flashcardmachine.com/2101951/6z7s) Discussions Participate in the following discussions: 1. Ratios [CLOs: 1, 2]. 1st Post Due by Day 3. Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story? How could liquidity ratios be used by investors to determine whether or not to invest in a company? Guided Response: Let at least two of your peers know how debt service ratios can be used by a lender in determining whether or not to lend money to a company. 2. Profit Margin [CLOs: 1, 2]. 1st Post Due by Day 3. Revenues Operating Expenses Salaries Maintenance and Repairs Rental Expense Depreciation Fuel Total Operating Expenses Operating Income Sales and Administrative Expenses Interest Expense Year Ending December 2012 40,000 Year Ending December 2011 35,000 Year Ending December 2010 33,000 15,000 6,000 2,500 2,000 4,000 29,500 10,500 6,000 10,000 9,000 2,500 2,000 3,500 27,000 8,000 4,000 9,000 10,000 2,500 2,000 2,500 26,000 7,000 3,000 2,500 2,000 1,000 31 ACC205 Principles of Accounting I Net Income COURSE GUIDE 2,000 2,000 3,000 Above is a comparative income statement for Cecil, Inc. for the years 2010, 2011, and 2012. Calculate the netprofit margin for each of these years. Comment on the profit margin trend. Guided Response: Let at least two of your peers know what you changes you would recommend to improve the net margin of the company. Quizzes 1. Videos & Quiz: Chapter 9. Due by Day 7. Complete the quiz on the assigned Chapter 9 videos for the week. 2. PowerPoint & Quiz: Chapter 9. Due by Day 7. Complete the quiz on the assigned Chapter 9 PowerPoint for the week. 3. Quiz: Chapter 9. Due by Day 7. Complete the quiz on the assigned readings for the week. Assignments 1. Week Five Assignment [CLOs: 1, 2]. Due by Day 7. Complete the assignment using the guidance report and changed numbers, available in your online classroom. Chapter Nine, Exercises 3 and 4 Chapter Nine, Problems 1, 2 and 3 2. Final Paper [CLOs: 1, 2, 3, 4, 5, 6]. Due by Day 7. Write a five- to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references. Here is a breakdown of the sections within the body of the assignment: Company Overview 32 ACC205 Principles of Accounting I COURSE GUIDE Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors? Horizontal Analysis of Income Statement and Balance Sheet Prepare a three-year, horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company. Ratio Analysis Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry. Recommendation Based on your analysis, would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company, as long as you provide support for your position. The paper Must be five to seven double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center. Must include a separate title page with the following: o Title of paper o Student's name o Course name and number o Instructor's name o Date submitted Must use at least two scholarly sources in addition to the course text. Must document all sources in APA style as outlined in the Ashford Writing Center. Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center. 33 ACC205 Principles of Accounting I COURSE GUIDE Course Map The course map illustrates the careful design of the course through which each learning objective is supported by one or more specific learning activities in order to create integrity and pedagogical depth in the learning experience. Learning Outcome Week Activity 1 1 1 5 5 5 5 1 1 1 2 2 2 3 4 4 5 5 5 5 2 5 34 4 3. Apply internal control principles to cash fund transactions, including accounts receivables and bank reconciliations. 3 2. Perform each step of the accounting cycle using Generally Accepted Accounting Principles 2 2 2 1. Examine business transactions using the accounting equation. Accounting Equation - Discussion Accounts - Discussion Week One Assignment - Assignment Accounting Cycle - Discussion Bank Reconciliation - Discussion Week Two Assignment - Assignment Week Three Assignment - Assignment Week Four Assignment Assignment Ratios - Discussion Profit Margin - Discussion Week Five Assignment Assignment Financial Statement Analysis Assignment Accounting Equation - Discussion Accounts - Discussion Week One Assignment - Assignment Accounting Cycle - Discussion Bank Reconciliation - Discussion Week Two Assignment - Assignment Week Three Assignment Assignment Current Liability - Discussion Week Four Assignment Assignment Ratios - Discussion Profit Margin - Discussion Week Five Assignment Assignment Financial Statement Analysis Assignment Bank Reconciliation - Discussion Financial Statement Analysis Assignment ACC205 Principles of Accounting I COURSE GUIDE 4. Illustrate and journalize the acquisition, allocation of costs and disposal of plant and intangible assets including the calculation of depreciation and amortization methods. 3 3 5 5. Compute and journalize a business's current liability and payroll transactions. 4 4 5 3 3 5 6. Calculate merchandise inventory operations using inventory valuation methods and journalize transactions related to ending inventory and cost of goods sold. 35 Depreciation - Discussion Week Three Assignment Assignment Financial Statement Analysis Assignment Current Liability - Discussion Week Four Assignment Assignment Financial Statement Analysis Assignment LIFO vs. FIFO - Discussion Week Three Assignment Assignment Financial Statement Analysis Assignment